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Diffrence between L2 cache and L3 cache?

One level.

(rimshot)

It's all about bottlenecking. If you have a high bus speed, L3 isn't all that helpful. In, for example, a G4, it is crucial (which is why I generally suggest going with 1.4gHz w/ L3 over 2.0gHz w/out)...
 
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